We’ve heard it over and over again these past months and have experienced delaysand shortages personally … but why? how? … and what can we do about it?
Forbes Magazine, in its September 3rd article, says that “When it comes to the current state of the global supply chain, weakness is everywhere.”
There are “dislocations” in the container market, shipping routes, air cargo, trucking lines, railways, and warehouses, which cause shortages of key manufacturing components, order backlogs, delivery delays, and a spike in transportation costs and consumer prices.
Before we give Forbes’ explanation of how and why the delays and shortages continue, let’s see how cracks in the supply chain have affected the folks that we at Transitions Liquidation Services serve every day.
The State of the Real Estate Market
Homes are selling at over-market prices due to the age-old supply and demand effect. The numbers of homes available are fewer than the demand for them. Consequently, when an individual or family decides to sell their home, the time from listing to closing is shortened considerably and they must be prepared to move – and in the case of many seniors, to deal with years of accumulated possessions — in a constricted timeframe.
At Transitions Liquidation Services, we not only help people get their homes ready for sale, but we also assist homeowners with the multi-faceted process of transitioning from a family home in which they lived for many years to a senior community or a downsized residence. This process requires sensitivity in working with the homeowners when helping to make decisions about what to take, what to sell, what to give away, and what to dispose of. It also requires expertise in knowing just how much can be moved to the smaller space of the new home.
Selling Family Treasures
There are fewer and fewer channels for selling furniture and decorative items, especially during the emerging Pandemic marketplace as companies, dealers, and resellers are seeing reduced storefront traffic, reduced staffing and hours, and fewer hours of operation.
Donating to Charities
The same is true of donations. Charitable organizations like Goodwill and Habitat for Humanity stopped taking donations for a while and are currently overwhelmed with requests for pickups while operating with reduced staffing and hours.
Scheduling Moves
Moves cannot always be scheduled on short notice because of the very real shortage of qualified and trained moving staff. Transitions Liquidation Services utilizes our long-standing relationship with Gentle Giant to reserve resources in advance.
Long-Term or Are Things Getting Better?
There seems to be an unrealistic feeling that the Pandemic is over, despite the soaring rates of infection in many parts of the country. The effects of the supply chain problems have created long-term effects. The lack of resources is continuing.
How it All Started
According to Forbes Magazine, stress in the supply chain pre-dates the Covid-19 Pandemic. Trade tensions between the US and China escalated prior to 2020 with the introduction of unprecedented tariffs and sanctions on Chinese companies. Beijing retaliated, targeting US agriculture exporters, which created volatility in supply and demand as companies all over the world rushed to bolster inventories before tariffs were implemented, putting stress on global logistics.
With the advent of Covid in the first half of 2020, there was less demand for most goods as economies went into lockdown. Transoceanic shipments were canceled, manufacturing was cut and workers were laid off everywhere. By summer, however, thanks to a huge fiscal stimulus, imports to the US surged. Consumers began shopping online, manufacturing restarted, and international trade resumed. But by late 2020, cracks in the supply chain began anew. It hasn’t been easy to restart the manufacturing process after lockdown. Moving raw materials and finished products around the globe requires predictability and precision and both have been lost in the Pandemic.
Working Harder to Achieve Goals
While the Pandemic has presented TLS with some challenges, we have had much success in channeling our energies into innovative solutions for our clients. We have been presented with some unusual requirements and have met them with inventive resolutions. You can read about some of them here.
If you or someone you love or care for is transitioning to a new residence and needs the assistance of TLS, call Marie LeBlanc at 617-513-0433 or email her to set up a complimentary consultation.